Performance Effects of Network Structure and Ownership: The Norwegian Electricity Distribution Sector

Transmission and distribution networks are capital intensive segments of the electricity sector and are generally considered natural monopolies. Due to their non-competitive nature, these are subject to independent regulation to prevent the abuse of monopolistic power and to induce competitive behaviour. Effective economic regulation of the electricity networks has become a key target in most developed economies after the 1980s. In Norway, incentive regulation and efficiency benchmarking were introduced in 1997. In Norway, the electricity grid is divided into three levels, namely, central, regional and distribution networks. In this paper, we study two overlooked aspects when analysing the performance of electricity networks: vertical integration and ownership structure. We use a stochastic frontier analysis approach to analyse the performance of Norwegian electricity distribution utilities for the period 2007–2014. We observe that vertical integration between distribution and regional transmission implies higher cost inefficiencies. This indicates that the efficiency gains due to separate management of the networks exceed the economies of coordination from vertical economies of scope. In addition, we find that council ownership entails higher efficiencies. This could be explained by the state having an interest in high-voltage electricity networks, rather than low-voltage ones, and the decentralised model from which the now centralised system was once developed.

The practical power flow analysis program based on matlab GUI developed for educational purposes for students in smart grids: Oyamatlab

With the rapid development of today's technology, it has become possible to improve the electricity grid by using computer and network technologies in electricity networks. Thus, electricity grids will be able to provide sustainable, safe, and uninterrupted energy to consumers by allowing a two-way flow of information and electricity. Networks that can do this are called smart grids. Although conventional power lines have unidirectional power flow, a smart grid; enables the bidirectional flow of information and electricity by placing various hardware and software on the network. The main purpose of this study that tackles the smart grid is to introduce an educational program that can perform optimum load flow analysis based on Matlab GUI that can be used by undergraduate, graduate, and PhD students. Especially, students will be able to use the program easily in subjects related to loading flow analysis in electrical networks. Students using the program will have the opportunity to see different algorithm results in IEEE busbar systems and compare them with each other. The developed program realizes the optimum load distribution in bus systems accepted by IEEE in the smart grid using various metaheuristic algorithms and uses objective functions such as power losses, fuel cost, and voltage adjustment while performing optimum load distribution analysis. As a result of the program called Oyamatlab, optimum values in the selected busbar system are obtained. This is the program with a simple user interface for students to use without difficulty; it can perform optimum load distribution analysis by selecting different purpose functions.